RIPHAH INTERNATIONAL COLLEGE
Associate Degree Program
Course Title : Analysis of Financial Statements
Course Number :
Credit Hours :3
Course Pre-requisite : Business Finance
Course Duration : 16 weeks
Course Description:
This course describes the analysis of financial statements and company valuation. Financial
statement analysis is the application of analytical tools, technology and techniques to general-
purpose financial statements and related data to derive estimates and inferences useful in
business analysis. Financial statement analysis comprise of accounting analysis, financial
analysis and valuation.
Course Objectives:
This course will help students to:
Offer students advanced knowledge necessary to understand the financial statements
in a very detailed manner.
Make students utilize the published data for analysis purposes.
Understand and analyze financial data for various types of decision making.
Learning Outcomes:
After studying this course, students should be able to:
Identify and apply the tools of financial statement analysis. Integrate and apply
finance and accounting concepts for valuation analysis, including appropriate
technology
Evaluate the impact of financial reporting choices on the quality of accounting
information including reported earnings
Apply a set of diagnostics to assess the quality of the accounting in financial
statements
Work effectively in a team environment
Violation of Academic Honesty Policy:
If the instructor receives any of the projects / assignments that are identical or partially
identical (including spreadsheets), such cases will receive a Zero. If the student violates the
Academic Honesty policy for a second time, he/she will receive an “F” grade for the course.
General Classroom Norms:
Class attendance is mandatory. You may miss up to 25% (8 out of 32 sessions) class
sessions. In case you exceed this level, you will be withdrawn from the course. As a courtesy
to the instructor and other students, be prepared to arrive at class and be in your seat on time.
In addition, please note that each class lasts for 90 minutes (1.5 Hours).
Also keep in mind some general rules as given below:
Cell phones should be powered off.
Eatables are not allowed in the class.
The teacher will not tolerate any disruptive behavior in the class.
The University Dress Code has to be observed, no warnings will be given, and
violators will be asked politely to leave the class and consequently will be marked
absent.
Participation:
Students are required to attend all classes and read all the assigned material in advance of
class (although not necessarily with perfect comprehension). Advanced preparation and class
participation are crucial for proper concept understanding. During discussion sessions, the
instructor generally keeps track of the insightful and useful comments students make.
(Irrelevant and Unproductive contribution is not rewarded)
Grade Distribution:
Evaluation Type Percentage (%) Activities
Quizzes 10 Minimum 04
Assignments 10 Minimum 04
Project 10 Minimum 01
Mid Term 30
Final Term 40
Total Points 100
Course Contents:
Week Contents Activities
Basic Accounting Principles Assignment 1
Assumptions
01-02 Principles
Constraint
Reading the Annual Report
Letter to Stockholders Quiz 1
Financial Highlights (Week 3)
Management’s Discussion and Analysis (MD&A) Assignment 2
03-05 Financial Statements (Week 05)
Notes to Consolidated Statements
Report of Management’s Responsibilities
Risk Factors
Legal Proceedings
Report of Independent Auditors
Directors and Officers
Income Statement
What Is the Income Statement?
Revenues
Cost of Goods Sold
Selling, General and Administrative
Research and Development
Stock Options Expense Quiz 2
(Week 06)
06-08
Depreciation Expense
Amortization
Interest Expense
Income Tax Expense
Equity Income in Affiliates
Minority Interest
Shares Outstanding
Earnings per Share
Nonrecurring Items
Earnings before Interest, Taxes, Depreciation,
and Amortization
MID TERM
Balance Sheet Assignment 3
Introduction (Week 10)
Double-Entry Accounting
Quiz 3
Income Statement Revisited: Links to Balance (Week 12)
Sheet
Retained Earnings: The Link Between Balance
Sheet and Income Statement
10-12
Order of Liquidity
Order of Liquidity
Assets
Liabilities
Shareholders’ Equity
Cash Flow Statement Assignment 4
Introduction (Week 14)
Cash Flow from Operations
13-15 Quiz 4
Cash Flow from Investing Activities (Week 15)
How the Cash Flow Is Linked to the Balance
Sheet
Financial Ratio Analysis
Introduction Project
16-17 Profitability Ratios (Week 16)
Coverage Ratios
Calculations
FINAL TERM
